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Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2023
Income Tax Disclosure [Abstract] |
Components of income tax expense (benefit) | The components of the Company’s income tax expense are as follows:
| Year Ended September 30,
| 2023 |  | 2022 |  | 2021
| (In millions)
Current tax expense: |  |  |  |  |
Federal | $ | 1,293.0 |  |  | $ | 1,448.9 |  |  | $ | 978.1 |
State | 272.4 |  |  | 256.1 |  |  | 197.0 |
| 1,565.4 |  |  | 1,705.0 |  |  | 1,175.1 |
Deferred tax expense (benefit): |  |  |  |  |
Federal | (39.0) |  |  | 21.2 |  |  | (12.7) |
State | (6.9) |  |  | 7.9 |  |  | 2.7 |
| (45.9) |  |  | 29.1 |  |  | (10.0) |
Total income tax expense | $ | 1,519.5 |  |  | $ | 1,734.1 |  |  | $ | 1,165.1 |
Comparison of income tax expense (benefit) and tax computed at the statutory rate | Differences between income tax expense and tax computed by applying the federal statutory rate of 21% to income before income taxes during each year is due to the following:
| Year Ended September 30,
| 2023 |  | 2022 |  | 2021
| (In millions)
Income taxes at federal statutory rate | $ | 1,326.1 |  |  | $ | 1,602.2 |  |  | $ | 1,124.8 |
Increase (decrease) in tax resulting from: |  |  |  |  |
State income taxes, net of federal benefit | 208.1 |  |  | 210.0 |  |  | 166.9 |
Valuation allowance | (3.1) |  |  | (2.1) |  |  | (3.3) |
Tax credits | (44.4) |  |  | (100.8) |  |  | (116.3) |
Excess tax benefit from stock-based compensation | (25.6) |  |  | (20.1) |  |  | (38.4) |
Tax contingencies | (1.5) |  |  | — |  |  | (6.0) |
Other | 59.9 |  |  | 44.9 |  |  | 37.4 |
Total income tax expense | $ | 1,519.5 |  |  | $ | 1,734.1 |  |  | $ | 1,165.1 |
Components of deferred tax assets and liabilities | Components of deferred income taxes are summarized as follows:
| September 30,
| 2023 |  | 2022
| (In millions)
Deferred tax assets: |  |  |
Inventory costs | $ | 67.8 |  |  | $ | 74.0 |
Inventory impairments | 5.8 |  |  | 9.5 |
Warranty and construction defect costs | 281.2 |  |  | 239.5 |
Net operating loss carryforwards | 42.2 |  |  | 44.1 |
Tax credit carryforwards | 6.8 |  |  | 6.4 |
Incentive compensation plans | 88.0 |  |  | 84.7 |
Other | 7.0 |  |  | 12.7 |
Total deferred tax assets | 498.8 |  |  | 470.9 |
Valuation allowance | (14.8) |  |  | (17.9) |
Total deferred tax assets, net of valuation allowance | 484.0 |  |  | 453.0 |
Deferred tax liabilities: |  |  |
Deferral of profit on home closings | 163.6 |  |  | 209.4 |
Depreciation of fixed assets | 46.3 |  |  | 30.5 |
Deferral of income | 23.4 |  |  | 18.5 |
Undistributed earnings of subsidiary | 51.7 |  |  | 27.3 |
Other | 11.8 |  |  | 26.2 |
Total deferred tax liabilities | 296.8 |  |  | 311.9 |
Deferred income taxes, net | $ | 187.2 |  |  | $ | 141.1 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amounts of unrecognized tax benefits for fiscal 2023 and 2022 is as follows:
| Year Ended September 30,
| 2023 |  | 2022
| (In millions)
Unrecognized tax benefits, beginning of year | $ | 2.9 |  |  | $ | 2.9 |
Additions for tax positions taken in the current or prior years | — |  |  | — |
Settlements | (1.5) |  |  | — |
Unrecognized tax benefits, end of year | $ | 1.4 |  |  | $ | 2.9 |

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